35% Investment Advisers Not Registered, SEBI Open To Segmented Approach, Says Madhabi Puri Buch

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Different segments in the market should be regulated differently, and SEBI is open to drafting such a regulation, said Chairperson Madhabi Puri Buch, inviting the association of registered financial advisers to help the regulator in framing rules.

Registered investment advisers need to collaborate and co-create with the regulator, given the lack of compliance by many of them, Puri Buch said the Association of Registered Investment Advisers' Financial Planning and Investment Advisory Conference held in Mumbai on Wednesday. "There is a need to build adequate risk mitigation measures."

She said that 35% of investment advisers are still not registered, despite having an easy registration process. "We want the association to be proactive and come to SEBI in case of any malpractices and help the regulator craft solutions."

RIAs have been asking for certain relaxations in regulations for financial planning as they believe there are only a few RIAs left who provide such asset allocation services.

Whether it is an analysis of enforcement orders or complaints, data is the most effective way to engage with SEBI. "We always request that our associations come to us with data that the ARIA has taken to the next level," said Buch.

SEBI has recently proposed to address the concerns surrounding unregistered finfluencers in a bid to tighten the regulations and establish a framework that ensures compliance with regulatory standards.

"The segregation of fact versus fake is crucial for regulators as well as investors," Buch said.

In August, the markets regulator released a consultation paper proposing a fee structure for analysts and investment advisers, in which it proposed fees for the advisers be paid through a portal monitored by a SEBI-recognised supervisory body to ensure that only SEBI-registered advisers be allowed to give advice.